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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: whitephosphorus who wrote (14654)	7/27/1999 7:52:00 AM
From: Sector Investor	Read Replies (2) \| Respond to of 42804

<<WOW!! Redback was a market cap of 3.5 BILLION>> The market has been very unfair to MRVC in setting it's market cap. Look at this ludicrously conservative analysis: Assume Optical Access is only worth 7X sales (the lowest estimate). Assume (for now) the net value of the networking divisions (products, prospects, facilities, engineers, etc) is only enough to cover the long term debt of $100 million (ridiculous of course). After an IPO of 20% of OA, MRVC would receive $88 million (add to their 129 million cash and investments) and their retained 80% would be worth another $352 million. Value of Optical Access stock - 352 million Cash and other liquid assets - 217 million Value of EVERYTHING else - $0 $569 million / 26.5 million shares is STILL worth $21.50 per share. Now add in proper valuations for each networking division and the value of MRVC should be ridiculously high.